There are many benefits when you own your own home, including tax benefits and growth in value and equity in the property. But when you can buy a home that also provides a rental income from a rental suite or rental unit in a multi-unit property, it provides you with your own place to live while you rent it out. Here are some recommendations to help you buy a property that you can also use as a rental property.
Look at a Duplex
A duplex is a multi-unit property that consists of two units attached together within the same building. Some duplexes have different floor plans and may be built into a home that was once a single-family property but can still provide you a good investment property that you can use as your own residence as well. Some traditional duplexes have side-by-side units that are mirror images of one another; however, some units provide an upstairs and a downstairs unit that may or may not be identical. However, when you live in one of the duplex units, you can easily rent out the other and manage it while you keep an eye on the property.
One of the more difficult prospects with owning a rental property is keeping an eye on the condition of the property. Your tenants may begin to collect trash or have a pest problem that you may not even know about and it can affect your property's value. However, when you live in the unit next door, you can see the condition of the property and manage it more effectively. And as a benefit, your tenants will know you are going to be living next door, and they are more likely to be on their best behavior and take better care of the property.
Calculate Rental Rates
A duplex is a great investment that will allow you to live in the property as your home but also have a tenant paying you rent, which you can put toward your mortgage payment. This can ultimately pay for a majority or all of the rent in some situations, but you need to make sure you evaluate the market rent when you research the rent for an area.
The area and the condition of the property and also its layout can affect the rent rate for a duplex. Look at other properties in the area that are duplexes to research the rent rate. This will ensure you can get top dollar and full value for your rental property but still keep it rented on a constant basis. If, for example, you market your property at a rent rate that is too high, renters are going to recognize this and you will have a hard time renting out the property. Your property can sit vacant for months at a time and lose several months of income because you have marketed it for too much.
Contact a local real estate company like Cannon Real Estate for help finding the best property to rent.